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Council hears overview of purchase‑of‑services grants; no budget change proposed
Summary
City staff described the purchase‑of‑services grant program and related contracted services that total roughly $3.567 million; the FY26 recommendation holds purchase‑of‑services funding at $100,000 and does not add CDBG funds for these awards.
Corey Burback, assistant city manager, presented the city’s purchase‑of‑services program, explaining the program’s role as one of three funding streams the city uses to support nonprofits. He said purchase‑of‑services grants are intended to pay for work nonprofits do that the city does not normally provide and that services must be delivered within Dubuque city limits and primarily benefit low‑ and moderate‑income households.
Burback told the council the FY26 manager’s recommendation includes no change to the $100,000 general‑fund allocation for purchase‑of‑services grants. He said some past years used Community Development Block Grant (CDBG) funds for similar awards but recommended no CDBG dollars be redirected into the purchase‑of‑services pot for FY26 because CDBG funds are needed for other projects and small CDBG awards can trigger complex federal reporting requirements that can be challenging for small nonprofits.
Burback reviewed the typical competition process: the city allocates the total bucket in the budget; nonprofits apply in a spring competition; the Community Development Advisory Commission reviews applications and sends recommendations to council for final approval; and awarded organizations submit quarterly reports to the Housing and Community Development Department. He emphasized that faith‑based groups are eligible provided their proposals align with city priorities and that funds must be used inside city boundaries.
The presentation also summarized contracted services — a separate and larger pool of funding administered within individual departments — that together with purchase‑of‑services and other grants make up the city’s nonprofit investments. Burback gave a consolidated contracted‑services total of $3,567,460 (FY26 recommendation) covering partners such as the Community Foundation of Greater Dubuque, Dubuque Main Street and others; those contracts are managed in the departments that receive the services.
Council asked clarifying questions. Mayor Cavanagh asked why no CDBG funds were included this year; Burback repeated that competing priorities and CDBG administrative requirements led to the recommendation. Councilmember Jill Farber asked about a $26,500 item listed as “True North” in the packet; staff explained “True North” is an older program name and the contract funds are being used for strategic initiatives such as housing and childcare through the Greater Dubuque Development Corporation (formerly using the True North brand). City staff said contract details will be brought forward with the department contracts in July.
